Global Alternative Fuels announces 100 Mgy biodiesel plant in El Paso; first step back for battered Texas biodiesel industry

In Texas, Global Alternative Fuels has commenced construction on a multi-feedstock biodiesel facility in El Paso.

The plant will reach a planned capacity of 100 Mgy in 2012, and will use a combination of soybean, palm, cottonseed and canola oils as well as waste vegetable oil.

In Texas, the Dallas News recently ran an article on the impact of the cancellation of Texan biofuel incentives. The cancellation, a last minute budget-balancing change, has shuttered two Texas biodiesel plants in the face of rising soybean prices.

Soybean prices have increased more than 50% although indications are that soybean planting will increase in the US substantially in 2008.

The state became one of the top three biodiesel producing states this year as a result of the incentive program. Under the old program, producers received a 16.8 cent incentive per gallon from the state. The incentive was capped at $3.6 million over 10 years, but helped offset the production cost of the first 20 million gallons of biodiesel.

Last month in Washington, Texas Sen. Kay Bailey Hutchinson put a procedural hold on the 2007 Energy Bill, which calls for 1 billion gallons of biodiesel blending. Sen. Hutchinson said that the bill was bad for Texas.

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